Volkswagen recently made statements that challenged Tesla’s spot as the top selling electric vehicle manufacturer in North America. The German automaker, which already is working on their line of I.D. electric vehicles that will release in the coming years, announced their plans to produce a whopping 50 million fully-electric vehicles, which will be priced significantly lower than what Tesla is producing. Coming from an automaker that’s known to talk the talk but sometimes hesitates to walk the walk, is this just a publicity stunt or could Tesla see serious competition in the coming years?

Volkswagen has stated that they have contracts in place, valued at $48 billion, with existing electric vehicle battery manufacturers. At this time, however, Volkswagen says they are still working on getting their production lines in place and are still preparing for the immense production numbers. For those wondering, this isn’t just a large uptick in the production numbers for the I.D. vehicle line, but an entirely new project altogether. VW CEO Herbert Diess, talking about the new entirely-electric MEB driving platform that will be used on the upcoming 50 million EVs, stated that it would lead to “A 40 percent cost reduction, [and] a much better car; twice the range, bigger interior, but outside, still a compact car.” With that being said, the German manufacturer says that their EVs will be priced “much lower” than Tesla’s vehicles, which currently are averaging a starting price on the Model 3 of around $45,000. VW thinks that a major advantage they have in producing these cars over Tesla is their already-established production lines, enabling them to produce and distribute vehicles on a much larger economy of scale and much faster than what Tesla has been able to manage this far. VW plans on offering its entry-level EV at a price point around $23,000 and claims the new EVs will be built for battery power from the ground up, as opposed to being combustion engines modified to take a battery.

 Potential Problems

Now there are a few potential hiccups that critics see in VW’s announcement to produce 50 million electric cars. First and foremost, VW has been known in the past to make bold claims about future plans and production models that take forever to leave the ground and be put into effect. The second potential threat to the production of these electric vehicles rests on whether or not they will actually sell. As it stands, although most drivers like the idea of owning an electric vehicle, high price tags and specialized equipment and maintenance requirements prevent many drivers from making the switch from gas to full electric.

Luckily for VW, although electric vehicles are by no means making up a major portion of current vehicle sales, they are slowly but surely gaining traction with drivers. In places like California, where there are regulations put into effect regarding vehicle emission and clean fuel sources that promote electric vehicles, more and more electric vehicles are popping up on the road every day, most of which are Tesla vehicles. Further, Tesla holds the award for the top-selling electric vehicle with the Model 3, which is also the fifth most top-selling in the country overall. With that being said, if VW can produce 50 million vehicles that can keep up with or surpass the performance of a Tesla at almost half the price, they could overthrow Tesla and take the spot as top electric vehicle manufacturer.


Only time will tell if VW will really be able to produce 50 million quality EVs in time to compete with Tesla and other electric vehicle producers. If Volkswagen is serious, Tesla will need to make drastic changes in their quality control and production speeds if they’re to keep up and compete with VW’s lower price point.

Holbrook Auto Parts has been proudly servicing vehicles of all types in the Detroit area for over 75 years. We’re excited to see what the future of the automotive industry will bring and are eager to start working on electric vehicles. If you need parts to keep your old car running a little longer until you get yourself a new EV, stop by Holbrook Auto Parts for the best prices on auto parts in Detroit!

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